Mapletree Industrial Trust · SGX:ME8U

Mapletree Industrial Trust — Investor Presentation (August 2020)

39 slides from Mapletree Industrial Trust's investor presentation, Aug 25, 2020

  1. Slide 1: Investor Presentation August 2020

    Investor Presentation August 2020

  2. Slide 2: Important Notice

    Important Notice This presentation shall be read in conjunction with Mapletree Industrial Trust’s (“MIT”) financial results for First Quarter Financial Year 2020/2021 in the SGXNET announcement dated 21 July 2020. This presentation is for information only and does not constitute an offer or solicita

  3. Slide 3: Contents

    Contents 01 Key Highlights 02 Overview of Mapletree Industrial Trust 03 Portfolio Update 04 1QFY20/21 Financial Highlights 05 Outlook and Strategy 3

  4. Slide 4: Key Highlights

    KEY HIGHLIGHTS Data Centres, 44490 Chilum Place (ACC2), Northern Virginia

  5. Slide 5: Sustainable and Growing Returns

    Sustainable and Growing Returns Distributable Income DPU Distributable Income (S$ million) DPU (cents) (S$ million) (cents) 100 3.50 3.13 3.16 3.07 3.08 3.10 90 3.00 2.95 3.00 3.01 2.85 2.832.83 2.88 2.92 2.88 2.87 3.00 2.79 2.82 2.81 2.73 2.85 80 2.67 2.65 2.60 2.43 2.47 2.512.512.51 70.6 2.32 2.37

  6. Slide 6: Portfolio Growth since IPO

    Portfolio Growth since IPO FY19/20 FY20/21 3 Asset Enhancement S$5.9b Initiatives (“AEI”) 5 Build-to-Suit (“BTS”) FY18/19 Projects S$4.8b 7 Acquisitions FY17/18 S$4.3b FY16/17 FY15/16 S$3.7b FY14/15 S$3.6b FY13/14 S$3.4b S$3.2b Acquisition FY12/13 Remaining FY11/12 S$2.9b 60% interest S$2.7b in 14 U

  7. Slide 7: 1QFY20/21 Results Highlights

    1QFY20/21 Results Highlights  Growth from acquisition and development projects offset by withholding of tax-exempt income distribution in 1QFY20/21 • 1QFY20/21 Distributable Income: S$70.6 million ( 11.6% y-o-y)  Tax-exempt income of S$7.1 million withheld in 1QFY20/21 for greater flexibility in c

  8. Slide 8: Proposed Acquisition of 60% Interest in Data Centres in the United States

    Proposed Acquisition of 60% Interest in 14 Data Centres in the United States Acquisition of the remaining 60.0% interest in the 14 data centres located in the United States Proposed Acquisition (the “MRDCT Portfolio”), which are currently held by MRDCT Purchase US$210.9 million (approximately S$299.

  9. Slide 9: Consolidation of Good Quality Portfolio of Data Centres

    Consolidation of Good Quality Portfolio of Data Centres Agreed Value NLA WALE Weighted Average Unexpired Occupancy Lease Term of Underlying Rate Land US$823.3m1 2.3m sq ft2 4.9 years3 100.0% Freehold4 97.4%5 Wisconsin Wisconsin 1 N15W24250 Riverwood Drive, Pewaukee 1 Michigan 2 Michigan New Jersey 2

  10. Slide 10: Proposed Divestment – 26A Ayer Rajah Crescent

    Proposed Divestment – 26A Ayer Rajah Crescent1 Sale Price GFA Completion S$125.0 million 384,802 sq ft 4Q2020  Exercise of option to purchase 26A Ayer Rajah Crescent by Equinix Singapore2  Seven-storey data centre developed by MIT for Equinix in Jan 2015  30-year land lease commenced on 22 May 20

  11. Slide 11: Overview of Mapletree Industrial Trust

    OVERVIEW OF MAPLETREE INDUSTRIAL TRUST Hi-Tech Building, 18 Tai Seng

  12. Slide 12: Overview of Mapletree Industrial Trust

    Overview of Mapletree Industrial Trust Mapletree Investments Pte Ltd Public & Inst MIPL Sponsor (“MIPL”) Unitholders 72.6% 27.4% Owns 27.4% of MIT Trustee Focused on (i) industrial real estate assets in Singapore, excluding Manager Investment properties primarily used for logistics mandate purposes

  13. Slide 13: Diverse Portfolio of 114 Properties

    Diverse Portfolio of 114 Properties DATA CENTRES FLATTED FACTORIES Facilities used primarily for the storage and High-rise multi-tenanted industrial buildings processing of data. These include core-and-shell with basic common facilities used for light to fully-fitted facilities, which include buildi

  14. Slide 14: Healthy Returns since IPO

    Healthy Returns since IPO COMPARATIVE TRADING PERFORMANCE SINCE IPO¹ 400 MIT UNIT PRICE +233.3% 350 300 250 200 FTSE ST REITS INDEX +21.8% 150 100 50 FTSE STRAITS TIMES INDEX -20.2% 0 Oct 10 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Oct 16 Oct 17 Oct 18 Oct 19 Rebased MIT Unit Price Rebased FTSE ST REITS I

  15. Slide 15: 87 Properties in Singapore

    87 Properties in Singapore Total WALE Weighted Average Unexpired Occupancy NLA (By GRI)1 Lease Term of Underlying Land1 Rate2 16.6m sq ft 3.4 years 35.9 years 90.2% Data Centres Hi-Tech Buildings Flatted Factories Business Park Buildings Stack-up/Ramp-up Buildings Light Industrial Buildings 1 As at

  16. Slide 16: 27 Data Centres Across North America

    27 Data Centres Across North America Total WALE Weighted Average Unexpired Occupancy NLA1 (By GRI)2 Lease Term of Underlying Land3 Rate4 4.3m sq ft 7.4 years Freehold 98.7% Ontario 1 Wisconsin 1 1 Michigan 1 Massachusetts Pennsylvania 1 1 New Jersey 2 Denver 6 Virginia 1 California 1 2 North Carolin

  17. Slide 17: Reputable Sponsor with Aligned Interest

    Reputable Sponsor with Aligned Interest About the Sponsor, Mapletree Investments  Leading real estate development, investment, capital and property management company  As at 31 Mar 2020, the Sponsor owns and manages S$60.5 billion of assets across Asia Pacific, Europe, the United Kingdom and North

  18. Slide 18: Portfolio Update

    PORTFOLIO UPDATE Hi-Tech Buildings, build-to-suit project for HP

  19. Slide 19: Portfolio Overview

    Portfolio Overview Singapore North American Overall Portfolio Portfolio Portfolio Number of properties 87 27 114 NLA (million sq ft) 16.6 4.31 20.91 Occupancy (%) 1QFY20/21 90.2 98.7 91.12 4QFY19/20 90.7 98.7 91.52 SEGMENTAL OCCUPANCY RATES1 99.2% 99.2% 98.4% 98.2% 94.0% 93.7% 91.5%2 91.1%2 86.1% 85

  20. Slide 20: Lease Expiry Profile

    Lease Expiry Profile EXPIRING LEASES BY GROSS RENTAL INCOME1 As at 30 June 2020 WALE based on date of commencement of leases (years)2 Singapore Portfolio 3.4 North American Portfolio 7.4 36.9% Overall Portfolio1 4.2 18.6% 17.0% 16.2% 11.3% FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 & Beyond Data Centre

  21. Slide 21: Large and Diversified Tenant Base

    Large and Diversified Tenant Base TOP 10 TENANTS BY GROSS RENTAL INCOME1 As at 30 June 2020 8.0%  Over 2,000 tenants  Largest tenant contributes 8.0% of Portfolio’s Gross Rental Income  Top 10 tenants forms about 29.9% of Portfolio’s Gross Rental Income Hi-Tech Buildings Data Centres 4.2% 3.7% 3.

  22. Slide 22: Tenant Diversification Across Trade Sectors

    Tenant Diversification Across Trade Sectors1 No single trade sector accounted >18% of Portfolio’s Gross Rental Income By Gross Rental Income As at 30 Jun 2020 1 Based on MIT’s 40% interest of the joint venture with MIPL in a portfolio of 14 data centres in United States through MRDCT and 50% interes

  23. Slide 23: Singapore Portfolio Performance

    Singapore Portfolio Performance Occupancy Gross Rental Rate S$ psf/mth 100% $2.50 95.1% 95.0% 94.9% 95.0% 95.2% 95.4% 95.5% 94.7% 94.6% 94.3% 94.5% 93.9% 93.2% 93.5% 93.8% 93.0% 92.5% 93.1% 92.6% 92.3% 92.5% 92.1% 91.3% 90.7% 91.5% 90.8% 90.7% 90.2% 90.2% 90.4% 90.1% 89.6% 89.8% 90.5% 90.2% 90.5% 90

  24. Slide 24: Rental Revisions (Singapore)

    Rental Revisions (Singapore) GROSS RENTAL RATE (S$ PSF/MTH)1 For Period 1QFY20/21 Before Renewal $3.69 $3.62 After Renewal $3.08 New Leases $3.61 Passing Rent $2.40 $2.36 $1.71 $1.93 $1.68 $1.66 3 $1.59 $1.63 $1.46 $1.53 $1.29 $1.25 $1.41 $1.22 2 Hi-Tech Buildings Business Park Buildings Flatted Fac

  25. Slide 25: Healthy Tenant Retention (Singapore)

    Healthy Tenant Retention (Singapore) LONG STAYING TENANTS RETENTION RATE FOR 1QFY20/21 Up to 1 yr 8.7% >10 yrs 100.0% 93.3% 94.3% 29.7% >1 to 2 yrs 81.2% 12.0% 75.4% 70.6% 4 yrs or less 35.7% More than > 2 to 3 yrs 4 yrs 7.7% 64.3% >3 to 4 yrs 7.3% N.A. >4 to 5 yrs Data Hi-Tech Business Flatted Stac

  26. Slide 26: Redevelopment – Kolam Ayer 2

    Redevelopment – Kolam Ayer 2 Property GFA Plot Ratio Kolam Ayer 2 Cluster Two Flatted Factories and an amenity centre 506,720 sq ft 1.5 New Hi-Tech Buildings, including a After Redevelopment 865,600 sq ft 2.5 seven-storey BTS Facility for Anchor Tenant  Redevelopment of Kolam Ayer 2 Flatted Factory

  27. Slide 27: 1QFY20/21 Financial Highlights

    1QFY20/21 FINANCIAL HIGHLIGHTS Business Park Buildings, The Strategy and The Synergy

  28. Slide 28: Statement of Profit or Loss (Year-on-Year)

    Statement of Profit or Loss (Year-on-Year) 1QFY20/21 1QFY19/20  / () (S$’000) (S$’000) Gross revenue 99,106 99,575 (0.5%) Property operating expenses (20,454) (21,656) (5.6%) Net property income 78,652 77,919 0.9% Borrowing costs (10,568) (10,576) (0.1%) Trust expenses (9,337) (8,835) 5.7% Share o

  29. Slide 29: Statement of Profit or Loss (Qtr-on-Qtr)

    Statement of Profit or Loss (Qtr-on-Qtr) 1QFY20/21 4QFY19/20  / () (S$’000) (S$’000) Gross revenue 99,106 101,801 (2.6%) Property operating expenses (20,454) (23,545) (13.1%) Net property income 78,652 78,256 0.5% Borrowing costs (10,568) (11,029) (4.2%) Trust expenses (9,337) (8,185) 14.1% Net fa

  30. Slide 30: Balance Sheet

    Balance Sheet 30 Jun 2020 31 Mar 2020  / () Total assets (S$’000) 5,297,002 5,187,883 2.1% Total liabilities (S$’000) 1,732,913 1,627,762 6.5% Net assets attributable to Unitholders 3,564,089 3,560,121 0.1% (S$’000) Net asset value per Unit (S$)1 1.62 1.62 - 1 Net tangible asset per Unit was the s

  31. Slide 31: Strong Balance Sheet

    Strong Balance Sheet 30 Jun 2020 31 Mar 2020 Total debt (MIT Group) S$1,552.6 million S$1,434.1 million Weighted average tenor of debt 3.9 years 4.7 years Aggregate 38.8% 37.6% leverage ratio1 Strong balance sheet to pursue growth opportunities  Raised S$410.0 million through a private placement in

  32. Slide 32: Well Diversified Debt Maturity Profile

    Well Diversified Debt Maturity Profile  New loans drawn from shorter tenor facilities to fund requirements in 1QFY20/21 and to provide cash reserve for potential working capital requirement  More than S$300 million of committed facilities available for the remainder of FY20/21 DEBT MATURITY PROFIL

  33. Slide 33: Risk Management

    Risk Management 30 Jun 2020 31 Mar 2020 Fixed as a % of total debt 86.3% 73.4% Weighted average hedge tenor 4.0 years 3.8 years Weighted average all-in funding 2.6% 2.9% cost for the quarter Interest coverage ratio for the 7.9 times 7.7 times quarter Interest coverage ratio for the 7.2 times 6.9 tim

  34. Slide 34: Outlook and Strategy

    OUTLOOK AND Data Centres, 7337 Trade Street, San Diego STRATEGY

  35. Slide 35: Singapore Industrial Property Market

    Singapore Industrial Property Market DEMAND AND SUPPLY FOR MULTI-USER FACTORIES DEMAND AND SUPPLY FOR BUSINESS PARKS  Total stock for factory space: 38.9 million sq m  Potential net new supply of 1.3 million sq m in 20201, of which • Multi-user factory space accounts for 0.6 million sq m. This inc

  36. Slide 36: Outlook

    Outlook Singapore  Challenging operating environment due to COVID-19 pandemic • Singapore economy contracted by 13.2% y-o-y in the quarter ended 30 Jun 2020, worsening from 0.3% contraction in the preceding quarter1 • While business confidence remained downbeat for 3Q 2020, it has improved from pre

  37. Slide 37: Outlook

    Outlook North America  Resilient asset class with growth opportunities • According to 451 Research3, North America is the second largest data centre region in the world, which accounted for about 30% of the global insourced and outsourced data centre space by operational square feet. Leased data ce

  38. Slide 38: Diversified and Resilient

    Diversified and Resilient  Anchored by large and diversified tenant base with low dependence on any single tenant or trade sector Stable and  Long leases in MIT’s data centres in Singapore and North America as Resilient Portfolio well as build-to-suit projects to underpin portfolio resilience  Fo

  39. Slide 39: End of Presentation

    End of Presentation For enquiries, please contact Ms Melissa Tan, Director, Investor Relations, DID: (65) 6377 6113, Email: melissa.tanhl@mapletree.com.sg

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